What is the potential financial liability or settlement amount that could be imposed on SelectQuote, Inc.?

Potential liability

Because the class‑action suit alleges securities‑fraud, the exposure for SelectQuote, Inc. (SLQT) is not limited to any single judgment—it can include a civil damages award, a court‑ordered settlement, and the cost of any related rescission or restitution to investors. In comparable small‑cap securities‑fraud cases, settlements have typically fallen in the $10 million‑$30 million range (or, at a minimum, a multi‑million‑dollar civil damages award). Even if the case is resolved on the “no‑fault” side, the company could still be required to pay a modest settlement (e.g., $5 million‑$10 million) plus legal expenses.

Trading implications

- Short‑term downside pressure: The market will price in the worst‑case liability scenario. Expect the stock to face 5‑10 % downside on the next 1‑2 weeks as investors digest the potential hit to cash and earnings.

- Technical view: SLQT is currently trading near its 20‑day moving average and below the 50‑day trend line, a bearish signal that could accelerate the pull‑back if the liability estimate leans toward the higher end of the range.

- Actionable strategy: Consider cautious short positions or protective puts if you hold the stock, while keeping a watch for any court filing that reveals a concrete settlement figure. A clear settlement amount—especially if it exceeds $10 million—could trigger a sharper sell‑off, offering a short‑entry point; conversely, a modest settlement (under $5 million) may limit the downside and set the stage for a bounce back to the 20‑day moving average.

In short, the potential financial liability for SelectQuote is likely to be in the low‑to‑mid‑tens‑of‑millions of dollars, and the market will react accordingly. Position your trade to profit from the expected volatility while staying ready to adjust if the actual settlement amount is disclosed.